Autonomous transportation. If you’re reading this, you have an internet connection, so you’ve heard all about how autonomous vehicles (AVs) are coming to take our jobs, eliminate traffic and give machines the power to make moral choices.
This technology is exciting, hence all the media hype – but what does it really mean for your business? How will it affect other industries, and even the global economy? Will the rise of AVs transform decades of business strategy, public infrastructure and urban operations?
We (in collaboration with Christian Austin and Sal Schiano) have spent a great deal of time researching the downstream impact of widespread automation in transportation. We talked to automakers, insurers, shipping and logistics firms, government representatives, security pros and more to understand how they are preparing for this transformation. As you can surmise by now, the ripple effects go far beyond auto industry.
Here’s a sneak peek at a few key takeaways from our new report, Autonomous Vehicles Will Reshape the Global Economy:
- Car companies transform into technology companies to survive. Car- and ride-sharing services have been shrinking the number of vehicles on the road in their respective regions of operations recently. As vehicle autonomy matures, shared transport will come when you call it, and the largest cities will need (or allow) far less privately owned passenger cars on its roads. As the branded “ultimate driving machine” told Forrester, tomorrow’s cars will be autonomous, connected, electrified and shared – and the car companies must transform from hardware manufacturers into high-tech mobility providers.
- Shipping and logistics firms pioneer the commercial use of AVs. Almost every interview we conducted agreed on this. As quickly as practicable and legally permitted, human-directed and fully automated platoons of autonomous trucks will replace human-driven freight – especially on long-haul routes. This will significantly increase the speed and volume of a foundational industry, drastically transforming efficiency and productivity for all who use it.
- A new commuting experience becomes a new customer touchpoint. In a world of autonomous transport, the physical act of driving becomes a distraction. Now, that hour long commute in bumper-to-bumper is a savior; giving you time to clear the inbox or host a meeting on your way to the office. And so, as luxury car brands shift their messaging from high-performance engines to Ultra HD entertainment systems, advertisers and media companies will compete for a spot inside the new vehicle experience. Big brands will sponsor rides and destination companies like Disney will seize the opportunity and extend their guest experience to the commute en route to the park.
As the ripple effects of an autonomous transportation expand to all areas of the global economy, CIOs and their C-suite peers must prepare for the disruptive challenges and opportunities that lie ahead. This research is meant to do just that.
We predict that by 2035, the global economy will be unrecognizably different.
Need to know more? Check out our Autonomous Vehicles Will Reshape The Global Economy.